California Electricity Rates Are Going Ballistic

California electricity rates are the highest in the continental US, double the national average. The City of Los Angeles electricity rates have risen about 45% since 2023, far outpacing inflation, as the utility has made several rate increases to address deferred maintenance, aging equipment, and new infrastructure projects. Now politicians decry the rate machine they built for these high electricity rates. Furthermore, Los Angeles ratepayers are revolting against the high electricity rates of LADWP.  

One reason for the escalating electricity rates that has not received proper attention is LA100, the costly renewable energy program that began in 2021.  The “Net Zero” goal of LA100 is 100% renewable (solar and wind) electricity in Los Angeles by 2035 in order to reduce greenhouse gas (GHG) emissions as a way to combat the “climate crisis.” LA100 is much more aggressive than the California’s SB100 (The 100 Percent Clean Energy Act of 2018), which has a goal of 100% renewable electricity by 2045.

However, Net Zero ideological policymakers within California and the City of Los Angeles remain oblivious to the reality that the State of about 40 million residents, and the City of Los Angeles with a population of about 4 million, are minuscule players contributing to the world’s climate and GHG emissions.

Realities that California Net Zero ideologs are oblivious to: 

• With a population of about 40 million, of the 8 billion living on this planet, 99.5% of them DO NOT live in California.
• GHG reduction is a symbolic effort because California generates less than 1% of world GHG emissions.
• Diffusion of GHG emissions globally means that local reduction of GHG emissions will barely reduce GHG exposure in California.
• California has no control over the increasing worldwide GHG emissions, like those from China.
• California residential electricity rates are the highest in the continental United States and are nearly double the national average rate.

Realities that the City of Los Angeles Net Zero ideologs are oblivious to:

• With a population of about 4 million, only 0.05% of the 8 billion on this planet live in the City of Los Angeles.
• Los Angeles is the only major US city attempting a costly transformation to 100% renewable energy by 2035.
• The goal of 100% renewable energy by 2035 is impossible because it requires complex transformation of the generation, transmission, and distribution of electricity.
• Energy reliability is reduced because solar and wind are not 24/7 sources of electricity.
• The current LADWP electricity rate per kWh is already among the highest in the US at 32 cents compared to the US average rate of 18 cents and the lowest state rate of 13 cents.
• LA100 is projected to increase LADWP electricity rates 3 to 4 times by 2035.
• A large portion (25%) of LADWP ratepayer accounts are already in arrears and the portion is much higher in the poorest parts of Los Angeles.

Both SB100 and LA100 have increased the cost of electricity in California and Los Angeles, and these costs to ratepayers will be increasing significantly in the years ahead. The cost of the Net Zero policies is born by ratepayers at a time when their top concern is the high cost of living, not climate change. A high rate relief plan has just been approved by the LADWP Commissioners. However, this plan is only temporary and many LADWP policies, like LA100, need to be reassessed and changed in order to reduce electricity rates being paid by ratepayers

Please share this information with teachers, students, and friends to encourage Energy Literacy conversations at the family dinner table.

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Dr. Enstrom can be reached at jenstrom@ucla.edu